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Five Factors when Determining Your ERP Software Return on Investment


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If you make the decision to invest in ERP Software, you want to be sure your return on investment is well worth it.  No one likes throwing away money, especially when it comes to your business.  You can’t afford to be frivolous in your spending habits.  Here are five factors to take into account when figuring out the ROI on your ERP Software investment:

  1. ERP software can help you identify both productive and non-productive areas of the business.  Knowing the successful elements of your business will allow you to expand or take advantage of those areas.  Discovering where time is wasted, duplicated, or has a lower profitability can help you streamline and improve those areas or drop them altogether.
  2. Companies employing ERP software quickly observe a reduction in IT spending simply by having a single software package and reducing the amount of redundant data stored on servers.  ERP can be as comprehensive as you need it to be.  By having all of your financial, accounting, marketing, and other business data in one software package, you’ll have fewer licensing costs, hardware expenses, and downtime due to software upgrades.
  3. When all of your financial and accounting data is stored in one ERP solution, you will be able to read more accurate financial statements and you’ll get them quicker than before.  You don’t have to wait until the books are closed at month or quarter-end.  You can click the print button and get a real-time report on any aspect of your business.  Having access to real-time financial reports will give you more time to analyze your data so that you can make timely, and more confident, business decisions.
  4. Many packages of ERP software include a CRM element which will help you track communications with your customers.  Customized emails, using social media, and knowing what special deals you have offered your customers will keep you organized and eliminate wasted time flipping through files or other records.  ERP software can improve customer relationships and help you up-sell and turn more leads into sales.
  5. One of the main reasons that companies are choosing ERP software is that they can have consistent real-time access of the critical information that will help them make and  accomplish strategic business objectives.  Knowing the successful areas of your business will help you grow and expand on that success.  The software will also track metrics so you know whether you are fulfilling your corporate goals and it will help you streamline or improve processes if you are falling behind.  ERP software provides visibility into all levels of the business to make sure that everyone is working toward the same goals.

There are many reasons to evaluate the use of ERP software at your company.  More and more businesses are choosing ERP software to streamline operations, find new opportunities, and improve the overall success of their company.  Contact Sikich to see how ERP software can work for you.

By Sikich, Microsoft Dynamics ERP Partner based out of Chicago

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